Posts Tagged ‘Emotions’

Currency Trading Psychology – Controlling your Emotions

April 15, 2010 - 5:52 am No Comments

The fact is, the majority of traders lose because they cannot control their emotions – and their emotions cause them to make irrational trades and lose.

Trading psychology is one of the keys to investment success, but its impact is not understood by many investors, who simply think they need a good trading method, but this is only part of the equation for winning at currency trading.

The influence Of Hope and Fear

In currency trading psychology, two emotions that are constantly present are:

Hope and fear. One of the traders who recognized this was the legendary trader W D Gann.

Hope and fear are destructive emotions and all traders are influenced by them, they are part of all traders’ psychology.

Hope and fear can make traders act irrationally, they know what they should do, but they simply can’t do it.

Executing a trading method with discipline is the only way to overcome destructive emotions.

Human Nature Is Constant �” Exploit It for Trading Success It doesn’t matter what market you trade:

Commodities, stocks, currencies, or what type of trader you are, a day or position trader, the fact is, trading psychology influences the majority of traders.

If you can control your emotions and trade with a disciplined plan you can gain a trading edge.

A Disciplined Plan for Big Profits

You need to control your emotions by having a specific plan, which if followed will gain you the correct currency trading psychology.

Having the correct currency trading psychology is just as important as having a good trading method.

Essential Reading for Any Trader

There have been some excellent writers on trading psychology including: W D Gann Jake Bernstein, Larry Williams, Dr Van Tharpe and Jack Shwager and you should read Shwager’s books Market Wizards and the New Market Wizards.

Emotion is part of human nature. We cannot avoid them. All we can do is control it and not make the mistakes the majority of traders do and adopt the right currency trading psychology.

If a trader can adopt the right psychology, they will gain a significant edge in their quest for long-term currency trading success

Things to Find in a Psychology Forum

November 23, 2009 - 2:38 am No Comments
Francis Githinji asked:


A psychology forum will give you a window into many great insights. It is vital for you to understand what Psychology is and how it affects you. As a lay man, a psychology forum will provide you with all the relevant information so that you can be empowered in this regard. There is nothing more interesting like learning how issues affect your psychology and how you can maintain your health in this regard. According to a forum I came across, the following overview will enable you understand what psychology is. It can be defined as an academic study or discipline that centers on the science of the study of the mental functions as well as study of behavior. Psychology comes with various aspects in which experts study. They are perception, emotions, personality, behavior, interpersonal relationships and the like. In our daily lives, our thought, emotions and behavior will make someone really know what is in out system. The study will explore various conditions that affect the mental faculty and seek to find solutions that will work.

A psychology forum does not have to be a boring class session. You will meet other members just like you, who are able to relate to practical issues and terms when it comes to the topic. However, before we zero in on an issue that affects our psychology everyday, let us focus on the various categories in which the study is divided into. First, there is clinical psychology. A good psychology forum will reveal that it is more focused on the diagnosis and treatment of mental disorders. There is also cognitive psychology will seeks to explore things like language, memory, problem solving abilities and attention. It focuses on many other things. Comparative psychology is the study of behaviors in animals which is then used to compare to seek a broader insight into the behaviors of man. Developmental psychology focuses on how the human psychology develops over time. This is very essential and continues to be a very important field of study. Forensic psychology centers on investigations or research for the legal and criminal justice system.

A psychology forum will reveal that simple things like anxiety and stress if not dealt with properly, can generate into a worse condition. It is vital for you to know yourself in this regard. Know what you can take in psychologically and how it affects you. When you are prone to panic attacks and excessive stress, a good forum will give you tips in which you can apply. It is not possible to prevent some of the common problems of stress but; with proper management, you will be in a position to live a happier life. There is so much more to talk about when it comes to psychology and this article cannot be long enough to exhaust all the information available. Look for forums that will leave you empowered on issues that affect you. Members of a forum will give their different thoughts and this will be fruit for thought. Take in as much as you can and, you will not be disappointed.


Fluctuating Emotions of People Form the Basis of Psychological Theories

October 29, 2009 - 2:48 pm No Comments
Muna wa Wanjiru asked:


As many of use are aware the field of psychology is very vast. There are many branches that deal with a wide variety of subjects. To deal with all of these social problems the trained psychologist will have access to many documents and other sources. From these information sources a psychological theory may be developed that will help with that problem that the psychologist is studying.

A psychological theory is just a theory that can be of help but only if all of the parties who are investigating the matter are willing to work together. This pooling of information will allow these professionals to work through the problem and find a solution that will work. You will find that in many cases a psychological theory can be used for various criminal investigations.

The information that is received from the police and eyewitnesses will help the criminal psychologist draw a psychological theory about the criminal’s behavior and allow them to predict the next move. This psychological theory will become more enhanced and accurate as the information that is given increases. Therefore it is to the best advantage of everyone that any information that is given be as accurate as possible.

These types of psychological theories are not the only ones that can be formed. There is a wealth of information that we can access just by looking at history. As all of the events that are recorded show human interaction it is possible to form a psychological theory about these interactions with regard to history. You need not be fully trained as a psychologist to find why these events happened in the manner that they did.

Instead you can use the information that you have from the various history books and your current understanding of human nature to make a psychological theory. Later on you can find out if the methods that you have used are the best way to go about making such psychological theories. This type of psychological theory is a way to develop your reasoning abilities and it will let you see history and man’s place in history in a different light.

There is one thing that you must remember when you are conducting your psychological theory. This is that people are at the best of times are somewhat difficult to understand. Psychology is in its present form just beginning to unravel the many reasons why people act they way they do. Therefore when you are working on a psychological theory you are dealing with the constantly fluctuating emotions and behavior of a living being – for this reason you must expect that your psychological theory will be ever-changing.